Catherine Big has a cash balance of 52,900 on 1 June 20X9. She opens a current account

Question:

Catherine Big has a cash balance of £52,900 on 1 June 20X9. She opens a current account on that date, with Belfast Bank, depositing £50,000. Her transactions during the next three days included the following:
1 June
• Cash sales £4,500.
• Received a cheque for £25,200 from Sean Dargan, a customer.
• Paid £2,400 as rent by cheque number 0001.

• Paid £48 as wages in cash.
• Paid the petty cashier £168 as the week’s imprest. The petty cashier has a cash float of £500 at
the beginning of each week and has produced vouchers to the cashier to evidence the payment
out of petty cash of £168 in the last week of May.
• Deposited all amounts into bank, leaving a cash float with the cashier of £4,000.
2 June
• Paid £76 for stationery by cheque number 0002.
• Cash sales £3,680.
• £9,600 is paid as business rates by a standing order.
• Paid £290 for electricity by cheque number 0003.
• Paid £72 as wages in cash.
• Received a cheque for £36,800 from Tony Kirk, a customer.
• Deposited all amounts into bank, retaining a float of £4,000.
3 June
• Sean Dargan’s cheque for £25,200 is returned to Catherine Big marked ‘refer to drawer’.
Catherine telephoned Sean, who apologized that he was temporarily short of funds and
requested Catherine to re-present the cheque to the bank on 4 June.
• The bank approves a loan to the business of £20,000. Catherine is informed that this is lodged to
the current account.
• Paid £56,000 for a car by cheque number 0004.
• Wrote cheque number 0005 to draw £1,200 in cash for office use.
• Catherine drew £2,000 cash for her personal use.